Buying, selling and operating apartments in Portland

Individual Portland Apartment Sales >$450K – July 2012 | 21 September 2012



Above is a table of individual Portland-area sales of apartment complexes greater than $450,000 in June 2012. We’ve included $/unit, $/sqft , unit count, year built and CapRate (as reported) and a comparison to July 2011 averages.  July 2011 had 3 sales that totaled almost $75M which skews the averages.

July 2012 is the third month in a row without any large (>100 units) sales.  A comparison to July 2011 is difficult since there were 3 large sales in Jun 11 and none in Jun 12, however, sales figures seem flat.

However, we look to be about 75% of what was sold in 2011 in terms of projected total sales dollars.  Other indicators:

CapRate – 2012 reported is averaging almost exactly what 2011 is so far at about 6.8% overall

$/sqft and $/unit – 2012 is running higher than 2011.  For reported sales thru today, $/unit = $94,223 (vs. $84,893 in 2011) and $/sqft = $106.63 (vs. $97.37 in 2011).

While CapRates remain constant, price inflation can be attributed to a very healthy rental market with low vacancies.

While there are lots (approx. 8,000) of units planned, due to 2012 soft costs, it’ll be hard for them to compete with existing rental stock (i.e. a new 2 bed may have to rent for $2000/month to pay the mortgage).

If you’d like more information on:

– A comparative analysis of your property vs. your neighborhood with specific comp properties for sale and listed and a rent survey, or

– Analyzing your property to maximize your income to see how you can make more money or get a higher sales price, or

– Details/background on individual sales in the report, or

– Free copy of our 80-page book – Buying, Selling and Operating Apartments Using FInancial Analysis

Please contact me:

Steve Morris – Senior Advisor Multi-Units
Sperry Van Ness – Bluestone & Hockley  / (503) 970-4593

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